The BBC has agreed to fund a £25m capital investment to get proposed local TV and online services off the ground as part of its settlements from the comprehensive spending review.
“The Government has asked the BBC to provide the one-off starter payment of local TV then an annual fund of around £5m per year to meet its running costs”, according to Press Gazette.
The BBC will initiate funding for up to 20 local TV stations from 2014/15- subject to necessary regulatory approvals.
The BBC’s current licence fee income is £3.6bn. The additional costs will amount to around a 16 per cent budget cut for the corporation in real terms.
(Source: Press Gazette)